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Neuberger Berman Real Estate Se Message Board

  • sandybluff98 sandybluff98 Nov 25, 2008 10:21 AM Flag

    NRO Dividend

    I believe they will cut the monthly dividend to about 3 or 4 cends a month starting in January.

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    • Based on Previous press releases it looks like they announce Dividends at the end of the quarter. Is there any reason to believe we could get an annoucnement about the divident cut prior to the last day of December.

    • yearly dividend is $1.84 which is more than the
      stock price. .03/.04 cents a month would still
      make this a 25/35% yearly return at current PPS.

    • If you are right and the dividend goes to 3 or 4 cents, that would be viewed as good news and push the fund back up near the NAV in my opinion. I have to wonder if there is news about the dividend comming because of the way the fund closed up right at the end of the day. This after an announcement that the dividend will be cut.

    • how did you come up with that estimate? or is it a guess.. I don't think they even know..

      • 1 Reply to henryandlucy
        On Tuesday November 25, 2008, before the market open, Neuberger Berman put out a press release that contained the following information regarding 3 of its Closed-End Funds (CEFs):


        * Neuberger Berman Real Estate Securities Fund Inc. (AMEX: NRO),
        * Neuberger Berman Income Opportunity Fund Inc. (AMEX: NOX) and
        * Lehman Brothers/First Trust Income Opportunity Fund (NYSE: LBC)

        Announced today that their Boards of Directors/Trustees are considering reducing the Funds’ distribution rates in connection with the next declarations of regularly scheduled monthly distributions.

        Recent market conditions have caused the values of each Fund’s assets to depreciate. Due to this decline and continued market volatility and economic uncertainty, the Funds’ investment manager believes that a lower level of leverage is appropriate and may provide greater stability to each Fund. Accordingly:

        * NRO has reduced its leverage by approximately $333.3 million;
        * LBC has reduced its leverage by approximately $31.8 million; and,
        * NOX has reduced its leverage by approximately $68.2 million.

        The Funds’ investment manager is keeping Board members apprised of market conditions and the effect that such conditions have had on each Fund and the ability of each Fund to continue to pay distributions at the current rates. In determining the appropriate level of distributions for each Fund, the respective Board will consider:

        * the continued challenges that Fund is experiencing in the markets for its portfolio securities;
        * the lower level of leverage that Fund will have on a going forward basis;
        * The Fund’s potential to earn net income and realize capital gains; and,
        * the likelihood that the new distribution rate is sustainable, among others things.

        Notwithstanding the potential reduction of future distributions that have not yet been declared, each Fund intends to pay the previously declared distributions for November and December. However, in light of current market conditions, the Funds anticipate that a substantial portion of the November and December distributions will be a return of capital.

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